Practice question
The owner validly transfers certificated shares by proper indorsement and delivery, but the transfer is not recorded in the corporate books. Under Section 62, what is the general effect?
- The transfer is invalid even between the parties in every case.
- The transferee automatically becomes a director.
- Recording is prohibited.
- Every creditor automatically consents to the transfer.
- It may be valid between the parties, but is not valid against others until properly recorded.
Legal references
- RA11232, RCC, Sections61–64: https://lawphil.net/statutes/repacts/ra2019/ra_11232_2019.html
- Tan v. SEC, GR95696, March3 1992, main decision: https://lawphil.net/judjuris/juri1992/mar1992/gr_95696_1992.html
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